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Why Coinbase Global, Inc. (COIN) Outpaced the Stock Market Today

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In the latest trading session, Coinbase Global, Inc. (COIN - Free Report) closed at $255.37, marking a +1.66% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.12%. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq depreciated by 0.23%.

Prior to today's trading, shares of the company had lost 20.33% over the past month. This has lagged the Business Services sector's loss of 6.13% and the S&P 500's loss of 3.45% in that time.

Market participants will be closely following the financial results of Coinbase Global, Inc. in its upcoming release. In that report, analysts expect Coinbase Global, Inc. to post earnings of $0.77 per share. This would mark a year-over-year decline of 25.96%. Simultaneously, our latest consensus estimate expects the revenue to be $1.55 billion, showing a 62.99% escalation compared to the year-ago quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Coinbase Global, Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 8.65% higher. As of now, Coinbase Global, Inc. holds a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Coinbase Global, Inc. is currently being traded at a Forward P/E ratio of 71.39. This valuation marks a premium compared to its industry's average Forward P/E of 13.76.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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